🔬 A look into $ENVB: Cannabis, psychadelics and cancer.
Why hello there my dear smooth brained simian simpleton!
Magnus here, how are you doing today? Did you catch $CNTX's +20% move today? The day after one posted some DD on said company?
$ASUR also seems to be moving as predicted.
Another little side note is that from today onwards Sundial ($SNDL) can now start their share repurchase program if they so see fit.
Now, we are not here for pleasantries nor re-caps. Let us get straight to the point! We are going to take a look at another biotech company, Enveric Biosciences ($ENVB)!
Who are ENVB and what do they do?
ENVB is the ticker symbol for the company Enveric Biosciences. Enveric is a publicly traded biotechnology company that trades on the NASD.
They are trying to develop mental health and oncological treatments through the study of synthetic cannabinoids and psychedelic-derived compounds.
They own various patents for combinations of cannabinoid compounds and chemotherapeutic agents.
ENVB, until the beginning of this year, didn’t exist. The current company (Enveric Biosciences) was formed when AMERI Holdings, Inc. purchased all outstanding shares of the company Jay Pharma Inc and “spun off” Enveric Biosciences as a brand new company. Enveric’s “pipeline” or the 2 main candidates they are studying have both been carried over from Jay Pharma Inc.
The pipeline
As mentioned, the company has 2 major candidates:
-A topical treatment for Radiation Dermatitis.
-A combination therapy drug for the treatment of Glioblastoma Multiforme (GBM).
Both of these treatments were originally developed by Jay Pharma Inc.
Both of these treatments are currently undergoing clinical trials and are currently in the pre-clinical stage.
Radiodermatitis topical formulation
From what I can gather, it is a cream made from CBD and other compounds. Designed to help treat radiodermatitis (the body's response to ionizing radiation exposure) and alleviate chemotherapy patients that suffer from it.
Treatment of GMB
It says on their own website that they believe that CBD has the potential to be used in combination with other compounds for the treatment of GBM.
More information can be found here.
Here you can listen to Joseph Tucker PhD, CEO of Enveric Biosciences talk a little about what they do
Patents
The company has 3 patents:
-Compositions Comprising Cannabidiol And Second Therapeutic Agents For The Treatment Of Cancer.
-Combination Of A Cannabinoid And A Chemotherapeutic Agent For The Treatment Of Breast Cancer.
-Compositions comprising cannabidiol and second therapeutic agents for the treatment of cancer.
Positive preclinical results
Their Radiodermatitis drug candidate showed positive results in preclinical study. Showing “significant reduction in dermatitis severity”.
Source link: BioSpace
Source link: BioWorld
Source link: Market Screener
Source link: Benzinga
The chart
Source link: TradingView
As we can see, the chart on TradingView only shows prices as far back as the beginning of this year. However, the chart on Finviz shows the current company's price as a continuation of its predecessor.
Source link: Finviz
Interesting, isn't it? Infact, if we move from monthly to weekly we can see the epic reverse split that they did right before beginning 2021 with a new ticker (and in the case of some data providers a new dataset). We can also see the typical reaction to a r/s, that huge sell off.
Source link: Finviz
A few more details
Let us scan over Finviz’s company snap-shot, ei?
Source link: Finviz
Interesting! According to Finviz the company is tiny yet it has very little debt , a relatively reasonable amount of cash and seems to be making money.
A biotech company making money? With low debt? What is this creature?
There isn't much institutional interest, it's just up off the 52 week low, analysts target price is $6.50 and there is a sizable short interest (although the data is stale).
Yahoo finance says similar things. However MarketWatch doesn't say very much.
It all seems very positive...
To the SEC!
10-Q filing came out on the 15th.
| Data | Sep 30 2021 | Dec 31 2020 | % change |
|---|---|---|---|
| Total assets | 69,757,704 | 4,096,891 | ~ +1,602.69% |
| Total liabilities | 14,390,855 | 681,250 | ~ +2,012.41% |
| Total shareholders equity | 53,366,849 | 3,415,641 | ~ +1,462.42% |
And now the condensed consolidated statements of cash flows. Let’s see where their cash is coming from!
| Data | 9m ending Sep30 2021 | 9m ending Sep30 2020 | % change |
|---|---|---|---|
| Net cash used in operating activities | - 7,390,358 | - 1,638,798 | ~ +350.96% |
| Net cash provided by investing activities | 2,380,327 | - | + inf % |
| Net cash flow from financing activities | 24,899,652 | 1,932,196 | ~ +1,188.67% |
| Cash end of period | 21,448,426 | 340,898 | ~ +6,191.74% |
It would seem that they are getting most of their cash from financing activities. And what might those activities be?
| Data | 9m ending Sep30 2021 | 9m ending Sep30 2020 | % change |
|---|---|---|---|
| Proceeds from sale of common stock and warrants | 21,614,488 | 227,500 | ~ +9,400% |
| Proceeds from warrant exercises | 3,285,164 | - | + inf % |
Of course the moolah comes from the market! Tis’ a biotech after all…
The take-away
- Jay Pharma was bought last year, re-skinned and re-structured.
- The products are in preclinical trials, so even if they are fantastic, they are still years from ever becoming a fully marketable product. However, a buyout could occur in the meantime
- The current administration is “more efficient” at funding the company through the markets. Having said that, this is the reason for the market to exist.
- Recent news touts the preclinical data for the company's radiodermatitis treatment as positive.
- Increased message volume on StockTwits, as good a metric as any...
Case for potentially joyful gains
As the company is in the biotech industry, the price of their shares tends to pop on news. As their products are cannabis, psychedelic and cancer related. It’s like a triple whammy of buzzwords, I’m sure NLP bots will go bananas. It is also a penny stock and our dear brethren
To add to this growing list of retarded arguments for a long position, todays trading opened and closed at the same price and the high and low were both $0.04 cents from its opening price.
What does this mean? Expect pattern porn for autistic monkeys intrinsic pattern analysis to be posted across the internet if anyone notices it...
Look for news releases and increases in mentions on social media. Also expect an offering if the price does spike, no lubrication will be supplied dear fellow. Long term aspects dont seem to be too shiny either.
- Magnus Chimpski
Disclaimer: This is not financial advice. It is an opinion. Magnus is not a financial advisor.
Magnus is infact a fictitious smooth brained simian of the interwebs, to take advice from an internet monkey would be insane.
- End of transmission
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